Suppose That 1999 Is the Base Year and the Price

question 156

Multiple Choice

Suppose that 1999 is the base year and the price index for 2008 is 130. A basket of goods that is valued $450 in 2008 would cost _______ in 1999.

• A) $4203
• B) $346
• C) $320
• D) $585

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Definitions:

Price Of Corn

The cost at which corn is bought and sold in the market, influenced by factors like demand, supply, and agricultural conditions.

Supply Of Ethanol

Refers to the total quantity of ethanol available in the market for consumption and use, influenced by production, demand, and government policies.

Farmers Plant

The act of farmers sowing seeds in order to grow crops, which is a critical step in the agricultural production process.

Decrease In Supply

A condition where less of a good or service is available than before, at a given price, usually due to changes in production costs, technology, or seller expectations.